Forfeited pledge in the Civil Code

In the contemporary legal regulation the forfeited pledge is forbidden by the provision § 169 letter e) No 40/1964 Coll., Civil Code (hereafter “CC”) There is at the same time forbidden according to the provision § 169 letter c) CC to verify the pledge in other way than is it set by the code. The decisions of the Supreme Court were restrictive to the forfeited pledge.

The new Civil Code (hereafter “NCC”) regulates the forfeited pledge in a complete different way. Provision § 1315 subsection 2 letter b) NCC states: “Until the secure debt does not immature, it is prohibited to arrange, that the debtor can monetize the pledge in any way or can hold the pledge for any or in advance stipulated price. The ban on the forfeited pledge will be newly applicable only before the due date of secured debt i.e. till the maturity of the debts. By the price of the pledge after the due date is stipulated objectively i.e. by an expert, it is possible to arrange an agreement about a forfeited pledge before the due date of the secured debts. To close this agreement is possible without any restriction with an exception if the debtor is a consumer of small or middle interpreter.

There is a issue how the new regulation of forfeited pledge will be sold by jurisprudence, because the Supreme Court expressed in a rejecting way to the forfeited pledge so far.